Stock-Picking Distinguishes This Mid-Cap Fund
Katie Reichart: T. Rowe Price Mid-Cap Value receives a Morningstar Analyst Rating of Gold, with positive pillar ratings for People, Process, Performance, Parent, and Price.
David Wallack has run the fund for 16 years. He's a true stock-picker, focusing on undervalued companies that are ripe for a turnaround, and he assesses value through a variety of lenses. Wallack is supported by a large analyst team at T. Rowe, but he's also an analyst at heart and really knows the fund's holdings, inside and out, developing in-depth reasons for owning each name in the portfolio.
Stock-picking has set the fund apart over the long term. The fund has beaten the Russell Mid Cap Value Index by 100 basis points annualized, and it has an even bigger edge on a risk-adjusted basis.
Costs are below average. The fund is closed to new investors, which helps ensure that its size won't hamper the fund's process.
Wallack just won Morningstar's 2016 Domestic-Stock Fund Manager of the Year award in recognition of a great year and superb long-term record.